Cel Sci Corporation (CVM)

[tigerpac]

When you can’t borrow from conventional lenders, the offering is usually at a huge discount to current stock price in order to make the deal. It allows the buyer an opportunity to immediately profit if there are no restrictions on the new stock (and it’s totally possible the buyer or some of its affiliates had short positions as this deal was being negotiated) .

For the company, selling shares is a cheaper alternative than paying interest with cash you don’t have (not that any bank will lend additionally to them at this time).

Approval of their drug is the only way out of this mess. Even then, is the market large enough?